Real estate title glossary
What is consideration?
Also called: deed consideration
Definition
Consideration is what the grantee gives in exchange for a property interest, usually the purchase price stated in or with the deed.
Some deeds recite a nominal amount such as $10 or "love and affection"; the actual price may appear only on a transfer tax return. A deed with no or nominal consideration between related parties is common in estate planning and divorces.
How it shows up in a title search
Where a county records the price, a title search lists it with each deed. A $0 transfer flags a gift, an intra-family or corporate restructuring, or a correction, each of which deserves a look at why it happened.
Guides that go deeper
- Chain of Title: What It Is, an Example, and How It Differs From an Abstract of TitleA chain of title is the ordered record of every transfer of a property. A worked example, how gaps appear, and how it differs from an abstract of title.
- Quitclaim Deed: What It Transfers, What It Doesn't, and When It's UsedA quitclaim deed hands over whatever interest the grantor has, with no promise the title is good. When it is used, what it does not do, and what it means for title.
- Property History: How to Look Up Past Owners, Sales, Permits and LiensProperty history lives in four public offices, not one. Where to find past owners, sale prices, permits and liens, ranked by reliability, with recent sales data.
Related terms
Source: Legal Information Institute, Wex: consideration. Plain-English summary of general US usage; state law varies, and this is not legal advice.